ONE of Britain’s biggest defence contractors has issued its strongest warning yet of the threat to operations if Scotland breaks away from the UK.

Babcock, Scotland’s largest employer in the engineering sector, expressed fears that a Yes vote in September might end its ability to win Royal Navy contracts at Rosyth and wipe millions of pounds of value off its operations at Her Majesty’s Naval Base on the Clyde at Faslane.

The firm, which supports about 8,000 jobs and brings almost £500million to the Scottish economy, believes its activities in the North Sea oil and gas sector may be hit by falling investment and that its entire Scottish operations, including rail and nuclear businesses, could suffer.

The concerns of senior executives have come to light in the firm’s annual report.

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And it was also claimed last night that independence would end Britain’s role as a world power.

Babcock supports around 8,000 jobs in Scotland [GETTY]

Britain would even lose its proud, centuries-old claim to be an island nation

Alistair Darling, Better Together leader

Better Together leader, Alistair Darling, claimed other nations would seize the chance to punish what was left of a depleted Britain.

Britain would also face the triple humiliation of being stripped of its status as a global, economic and European power, said the former chancellor.

Mr Darling stressed that Britain’s voting power in Brussels would be diminished and it would be thrown off the top table of the United Nations and the International Monetary Fund.

He said: “The impact on Britain of a Yes vote would be more profound than people think. We would not be the same UK because a large geographical part would have left.The EU, without a doubt, would say: ‘Right, there’s a lot of things up for grabs now’ – in particular, our voting power in meetings.

“People would also say: ‘What about your automatic seat on the UN Security Council?’ Similarly the UK’s seat at the IMF. They would all be up for grabs. Britain would even lose its proud, centuries-old claim to be an island nation.

“Island nation would be a difficult one because a large chunk of the island would have gone.”

Yesterday, the chief executive of Thales, another key defence firm employing about 650 people at Linthouse in Glasgow, appeared to echo Babcock’s reservations.

In a rare and carefully-worded public statement, CEO Victor Chavez said that he could see “no discernible benefits to our domestic or export prospects from independence”.